Accounting - Study Mode
[#2531] To measure the profitability of a business, among the following which ratio will be used? i. Acid test ratio ii. Return on capital employed iii. Net profit ratio iv. Interest protection ratio v. Stock periodic ratio 6. Debt equity ratio
Correct Answer
(C) ii and iii
[#2532] Consider the following statements: Assertion (A): In double account system, the final accounts of a company fails to disclose the true condition of its assets. Reason (R): Because the assets of the company are shown at their cost price even when they are completely worn out. Now, select your answer:
Correct Answer
(A) Both A and R are correct and R is the correct explanation of A
[#2533] The liability of partners is . . . . . . . . .
Correct Answer
(B) Unlimited
[#2534] A company with total assets amounting to Rs. 15,00,000 (including Goodwill Rs. 1,50,000 discount on issue of shares Rs. 2,00,000 and accumulated loss Rs. 2,00,000) and the total liabilities amounting to Rs. 2,20,000 (including a contingent liability of Rs. 40,000) has been taken over by a new company for a purchase consideration of Rs. 11,50,000. the Goodwill a/c in the vendee company's books will appear at:
Correct Answer
(C) Rs. 4,20,000
[#2535] The question contains two statement. One is Assertion (A) and the other is Reason (R) . You have to examine both the statements carefully and decide whether the Assertion (A) and Reason (R) are separately true? and If so, then Reason is the correct explanation of the Assertion . Mark these items in the balance sheet. Assertion (A) Balance sheet does not reveal ownership of business. Reason (R) Assets are just unrefined cost.
Correct Answer
(A) A and R both are correct and R is correct explanation of A